Nail, Head

Well, yes, quite.

The solution for people who are bankrupt is for them to go bankrupt.

This applies to countries just as much as companies or individuals.

But as countries do not in fact go bankrupt, then bond defaults and investor haircuts all round are the only way to do it.

It does rather puzzle me that those so insistent that the euro is a very important project indeed fail to see that such defaults by some countries are the only way to preserve that very euro. For it certainly won\’t survive decades of grinding deflation in those countries that need to but cannot default.

1 thought on “Nail, Head”

  1. “It does rather puzzle me that those so insistent that the euro is a very important project indeed fail to see that such defaults by some countries are the only way to preserve that very euro.”

    The solution to that puzzle is… if they understood what they are really dealing with, they would not support the Euro.

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